A Guide to Car Ownership for Single-Income Households

Learn how to buy a car on a single income without breaking the budget. Expert tips on calculating total costs, choosing the right vehicle, and protecting your financial stability

For many South African families, life is a balancing act performed on a single paycheck. In this financial landscape, a car isn’t just a shiny status symbol; it’s a vital tool for getting to work, doing school runs, and managing family life.

However, transport typically consumes 10 to 15 percent of a South African household’s income, making it one of the largest monthly expenses. This means the decision to buy requires careful consideration. As Lebogang Gaoaketse, Head of Marketing and Communications at WesBank, puts it: “The challenge is making sure that mobility does not come at the cost of financial stability.”

Here is how to approach car shopping with confidence when you are the sole provider.

1. Master the “Total Cost” Calculation

The most common mistake buyers make is falling in love with a monthly instalment and forgetting about everything else. To truly understand what you can afford, you must look at the “hidden” costs that appear in everyday life:

A household taking into consideration the cost of ownership

Insurance: A non-negotiable expense to protect your asset.
Fuel and Maintenance: Smaller, fuel-efficient models are generally cheaper to run and insure.
The “Rainy Day” Fund: You should always have a provision for unexpected repairs.

Expert Tip: Aim to keep your total car expenses, including fuel and maintenance, between 20 and 25 percent of your net income. Ideally, the repayment alone should stay close to 10 percent of your gross salary. READ: The Hidden Truth About Car Ownership In South Africa

2. Choose Practicality Over Prestige

When budgets are tight, choosing a vehicle that fits comfortably rather than one that pushes your credit limit to the max is a smart move.

A single mom that choose a affordable and reliable car.

The Pre-owned Path: Reliable used vehicles with a full-service history offer incredible value. Just ensure they are bought from reputable sellers and have been properly inspected.
Reliability is King: When one income supports the home, a car should make life easier, not more stressful. Prioritize running costs and reliability over luxury features.

3. Understanding the Fine Print

Before you sign on the dotted line, you need to understand how the “math” of your loan works.

A single mom making sure she understands the fine print of her loan.

Interest and Terms: A longer repayment period might lower your monthly payment, but it increases the total interest you pay over time.
The Power of paying a Deposit: Even a modest deposit reduces your total loan amount and lowers your monthly stress.
The Balloon Payment Trap: These can lower your monthly instalments significantly, but they require a rock-solid plan for the end of the term, whether through savings, refinancing, or trading the car in.

4. Protect Your Credit Health

Your credit profile is your most valuable financial asset. By paying your accounts on time and avoiding unnecessary debt, you increase your chances of securing a more favourable interest rate, which saves you thousands in the long run.

Here’s the thing

“Clarity brings confidence,” says Gaoaketse. When you lead with affordability, a car becomes an enabler of freedom rather than a source of constant worry. With the right planning, you can enjoy the road ahead without compromising your family’s financial peace of mind.

Ready to see where you stand? Before you visit the dealership, use the WesBank Affordability Calculator to get a clear picture of what fits your budget.